The Financial Conduct Authority has fined Barclays £40m for failing to properly disclose arrangements with Qatari entities during fundraising efforts amid the 2008 financial crisis.

The fine follows Barclays' decision to withdraw its appeal against the regulator's findings, and its proposals of a £50 million fine in 2022.

The case centres on Barclays' failure to fully disclose details of advisory fees paid to Qatari investment vehicles during emergency fundraising efforts that helped the bank avoid a government bailout.

The bank raised £11.8bn through two share sales in 2008, with the FCA alleging that Qatari investors received higher fees than those from other countries including China, Singapore and Abu Dhabi.

The FCA said it considered the bank's conduct to have been "reckless and [lacking] integrity".

Steve Smart, joint executive director of enforcement and market oversight at the FCA, said: "Barclays' misconduct was serious and meant investors did not have all the information they should have had. However, the events took place over 16 years ago and we recognise that Barclays is a very different organisation today."

While agreeing to pay the reduced fine, Barclays maintained its opposition to the watchdog's decision. "In view of the time elapsed since the events, Barclays wishes to draw a line under the issues referred to in the decision notices and has decided not to contest the decision notices further," Barclays said in a press statement. "Barclays does not accept the findings of the decision notices and this has been acknowledged by the FCA."

The FCA said the events in 2008 were of national importance as banks sought emergency recapitalisation. "The FCA has a primary objective to ensure market integrity," it stated. "Banks should treat their obligations to the market and shareholders seriously."

Commenting on developments, Karl Foster, fintech and financial services partner at law firm, Spencer West LLP, said the matter is a reminder of the "lack of accountability and sense of invulnerability of banks" at that time that led to the financial crisis, LIBOR and other scandals.

"Whilst there may be sound legal reasons for Barclays not accepting the FCA’s position in its statement in this matter – as any good litigation lawyer will remind us – nevertheless the lack of humility in withdrawing the appeal takes us back to those times," he noted.

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